Posted by Bill Gatten on July 23, 2001 at 21:20:31:
Bob,
I’m afraid you’re a bit off track here.
The current owner becomes the grantor (settlor). The trustee is whomever he nominates: could be him, you or a third party. You become the (or “a”) beneficiary in the trust.
The loan is brought current; the property is placed into the owner’s trust; you are named as the (or a) beneficiary. You then direct the trustee to sell the property to whomever your buyer may be. The trustee then is the seller (whether it’s you or someone else).
For a short-term flip or assignment you could be the trustee; however, for a long-term hold you’d need much more substantial arrangement. We’d advice having a third party corporate trustee; having you be a 90% beneficiary with the seller retaining 10% until the trusts termination (for various legal reasons), at which time he would forfiet it all to you.
We would also suggested having a paid trustee and a pro bono collection services handling all payments and disbursements (i.e., a PACTrust).
Bill Gatten